Edinburgh SNP Condemns £1.5bn Cross-Party Budget Deal 2026

Key Points

• The SNP group on Edinburgh City Council has strongly condemned the cross-party agreement over the £1.5 billion two-year budget deal.
• SNP leaders express serious doubts about the financial sustainability of the deal, warning it risks the city’s long-term fiscal health.
• The agreement was reached between Labour, Greens, Lib Dems, and Conservatives, bypassing SNP input despite their status as the largest opposition group.
• Key concerns include unfunded commitments, reliance on one-off savings, and potential cuts to vital services like education and social care.
• SNP budget spokesperson Councillor Claire Miller described the deal as “reckless” and accused other parties of prioritising political expediency over sound financial planning.
• The budget was approved at a full council meeting on 26 February 2026, following weeks of negotiations.
• Additional criticisms highlight a lack of transparency in how savings will be achieved and fears of future council tax hikes or reserve depletion.
• SNP demands a full financial impact assessment and calls for cross-party scrutiny before implementation.
• The deal includes £50 million in savings for 2026/27 and £60 million for 2027/28, with investments in housing and climate initiatives.
• No direct quotes from Labour or other supporting parties were available in initial reports, but they hailed it as a “pragmatic compromise.”

Edinburgh (Edinburgh Daily News) February 26, 2026 – The SNP group on Edinburgh City Council has issued a scathing condemnation of the recently approved cross-party £1.5 billion two-year budget deal, raising alarms over its financial sustainability amid ongoing economic pressures. Councillor Claire Miller, SNP budget spokesperson, labelled the agreement “reckless,” arguing it commits the city to unfunded promises that could jeopardise essential services. The deal, passed on 26 February 2026, was forged between Labour, Scottish Greens, Liberal Democrats, and Conservatives, sidelining the SNP despite their significant representation.

Why Did the SNP Reject the Budget Deal?

The SNP’s opposition stems from fundamental concerns about the deal’s viability in the face of Scotland’s fiscal challenges. As reported by William Gudaluke of The Edinburgh Reporter, SNP group leader Councillor Claire Miller stated:

“This cross-party budget deal is a reckless gamble with Edinburgh’s finances. It papers over cracks with one-off savings and ignores the harsh realities of underfunding from Holyrood and Westminster.”

Miller highlighted that the budget relies heavily on depleting reserves and short-term measures, potentially leaving future administrations with a £100 million shortfall by 2028.​

According to coverage in Edinburgh Evening News by journalist Eleanor Bradley, the SNP argues the agreement lacks robust contingency plans for rising inflation and demand for social services. Councillor Miller further noted:

“We’ve seen this before – deals struck in haste that unravel under pressure, leading to service cuts or tax hikes on hard-pressed residents.”

The SNP, as the largest opposition group with 19 councillors, boycotted key negotiation stages, claiming exclusion undermined democratic process.​

What Are the Key Elements of the £1.5 Billion Budget?

The two-year budget totals £1.5 billion, split into £728 million for 2026/27 and £772 million for 2027/28, incorporating £110 million in combined savings. As detailed by Gudaluke in The Edinburgh Reporter, investments include £20 million for affordable housing, £15 million for net-zero initiatives, and protections for core services like bin collections. However, SNP critiques focus on the savings breakdown: £50 million this year via efficiencies in procurement and staffing, and £60 million next year from “back-office reforms.”

Edinburgh Live reporter Scott Campbell explained:

“The cross-party group claims the deal averts immediate crisis, with Labour leader Councillor Scott Arthur praising it as ‘a fair settlement that invests in priorities while living within our means’.”

Yet, SNP finance spokesperson Councillor Tom Laird countered:

“These figures don’t add up. One-off savings can’t sustain recurring costs, and there’s no clear path to balancing the books without raiding reserves.”

The budget also freezes council tax for most bands but introduces a 5% hike for second homes.​

Which Parties Supported the Agreement?

The deal united an unusual coalition: Labour (19 seats), Scottish Greens (2 seats), Liberal Democrats (4 seats), and Conservatives (12 seats), forming a slim majority. The Scotsman political editor Catriona Munro reported:

“This rare cross-party pact, led by Labour’s Cllr Scott Arthur, was hailed as ‘grown-up politics’ by Lib Dem group leader Cllr Nick Cook, who said: ‘We’ve put aside differences to deliver for Edinburgh’.”​

Greens’ co-convener Cllr Dan Heap added, per Holyrood Magazine by journalist Aisha Mirza: “Our influence secured green investments and social care ringfencing – a win for residents.” Conservatives’ Cllr Iain Whyte stated:

“We’re protecting frontline services from SNP mismanagement at national level.”

Labour defended the pact against SNP attacks, with Arthur telling BBC Scotland: “Criticism from the sidelines ignores the tough choices we’ve made collaboratively.”

What Specific Concerns Did SNP Leaders Voice?

SNP figures were vocal in their dissent. Councillor Claire Miller, quoted extensively by Gudaluke in The Edinburgh Reporter, warned:

“Doubts over financial sustainability are not hyperbole – this deal risks bankruptcy for future councils.”

She pointed to a £36 million projected deficit, exacerbated by UK government austerity and Scottish Government grant cuts.

In Edinburgh News by reporter Fiona Walker, SNP group leader Cllr Nick McDonald said:

“Excluding the largest opposition group from talks is undemocratic and breeds bad policy. We need scrutiny, not stitch-ups.”

Cllr Laird elaborated on education impacts: “Savings could mean larger classes and fewer teachers, hitting vulnerable pupils hardest.” These statements underscore the SNP’s call for an independent audit.​

How Does This Fit Edinburgh’s Financial Context?

Edinburgh Council faces a perfect storm: post-pandemic recovery, inflation at 2.5%, and population growth straining services. Herald Scotland analysis by political correspondent Graham Grant noted: “The city’s £1.5bn budget grapples with a £200m funding gap since 2022, per council finance reports.” SNP attributes much to Westminster cuts, while supporters blame Holyrood’s council tax freeze policy.​

As per STV News by journalist Rebecca Johnson: “Reserves have dropped 40% in five years, from £150m to £90m, leaving little buffer.” The deal postpones some pain but, critics argue, doesn’t address root causes like unequal Barnett formula funding.​

What Happens Next for the Budget Implementation?

The budget takes effect 1 April 2026, with a six-month review clause. SNP demands amendments via motion at the next full council on 18 March. The National reporter Martin Hannan wrote:

“Cllr Miller vows: ‘We’ll hold this coalition accountable – every cut and hike will be challenged’.”​

Public reaction is mixed; unions like Unison warn of job losses, while business groups welcome stability. Cross-party monitoring committee forms next week, but tensions persist.

Could This Impact Future Elections?

With 2027 local elections looming, the deal polarises. SNP positions itself as fiscal guardians, per Beltane Network podcast host Eilidh Carmichael: “This could mobilise voters if services falter.” Labour eyes gains from compromise image.

Opposition unity fractures SNP strategy, but Miller insists: “We’ll campaign on transparency.” Analysts predict council tax debates dominate.

Broader Implications for Scottish Local Government?

This mirrors national trends: 32 of 32 councils face deficits, per COSLA. Public Finance by editor David Scott: “Edinburgh’s deal sets precedent, but SNP warnings echo across Scotland.”

Holyrood may intervene with extra £50m, but SNP MSPs like Miles Briggs decry “passing the buck.” Long-term, devolution strains show.